Welcome to The Outdoors Trader

Register Now
  1. 10 Year Anniversary Gun Show & Swap Meet - May 1, 2021 - Click here for tickets and click here for info!
    Dismiss Notice
  2. Welcome to The Outdoors Trader! Join today, registration is easy!

    You can register using your Google, Facebook, or Twitter account, just click here.
  3. Featured Listings are working again! Feature your listing on every page for $3 a day! Click here for all the info.
    Dismiss Notice

taxes on stock earnings?

Thread in 'Finance / Investing' started by chucklenut, Aug 26, 2019.

  1. chucklenut

    chucklenut The Hen that laid the Golden Legos

    Messages:
    44,972
    Likes Received:
    30,471
    Joined:
    May 10, 2011
    Location:
    atlanta
    Rating
    100%
    question, at which point do you have to pay taxes on the sale of stocks?

    i find the answer to these questions a big maybe lol

    kinda bull**** that you can spend taxed dollars to gamble and then if the gamble pays off you owe money on money that was already taxed

    conversely if you invest and lose a bunch, do you get a tax rightoff?
     
    HUNTING likes this.
  2. TheGman

    TheGman The Hen that laid the Golden Legos Supporter

    Supporter
    Messages:
    10,154
    Likes Received:
    10,111
    Joined:
    Mar 3, 2013
    Location:
    Coweta county
    Rating
    100%
    You pay taxes on gain at year end if stocks are sold, you can write off losses against gains (offset).
    Now mutual funds can burn you as capital gains can be distributed and the fund can loose value but you owe tax (Complicated) Government ****ing us
     
  3. HUNTING

    HUNTING ODT Supporter

    Supporter
    Messages:
    10,261
    Likes Received:
    4,240
    Joined:
    Mar 7, 2012
    Location:
    Cartersville
    Rating
    100%
    You do get to claim a tax right off if you lose money but only up to $12000 or $15,000 per year....

    You do have to pay taxes on gains... I believe that it is different for short and long term capital gains taxes

    Short term I believe is taxed at your income rate and long term is cheaper at around 15% maybe?

    Someone can clarify Bc I’m probably off here
     
    chucklenut likes this.
  4. chucklenut

    chucklenut The Hen that laid the Golden Legos

    Messages:
    44,972
    Likes Received:
    30,471
    Joined:
    May 10, 2011
    Location:
    atlanta
    Rating
    100%
    Dang, well that sucks lol

    So if i buy some stock at 8 a share (and spend like 1000 bucks) and sell when it reaches 15 within a year, ii make 875 bucks

    Then take the 875 and hit it with my current effective tax rate? What if my reported income is under 20k yearly? Way below poverty line
     
  5. sparked1

    sparked1 The Hen that laid the Golden Legos Supporter

    Supporter
    Messages:
    15,863
    Likes Received:
    9,689
    Joined:
    Mar 15, 2011
    Location:
    NE GA
    Rating
    100%
    If you held it less than a year, short term gains are taxed as ordinary income. So whatever your bracket is at under $20k (zero?). Anything you hold longer than 1 is taxed at 0% for income under $34k or so, 15% $40-400k, and 20% if you’re income is over $400k or so.

    Also, capital loss deductions are limited to $3,000 per year ($1500 if single), not 12k or 15k as someone else mentioned. If you have more than $3k in losses you can carry it over year to year.
     
  6. chucklenut

    chucklenut The Hen that laid the Golden Legos

    Messages:
    44,972
    Likes Received:
    30,471
    Joined:
    May 10, 2011
    Location:
    atlanta
    Rating
    100%
    thanks

    the bracketing systems to me seem so arbitrary

    another question about time frame; does the 1 year mark apply to date of purchse and sale, calender year, or fiscal year?
     
  7. sparked1

    sparked1 The Hen that laid the Golden Legos Supporter

    Supporter
    Messages:
    15,863
    Likes Received:
    9,689
    Joined:
    Mar 15, 2011
    Location:
    NE GA
    Rating
    100%
    Date of acquisition to date of disposition, a full 365 calendar days.
     
    chucklenut likes this.
  8. Old_School

    Old_School ODT Junkie!

    Messages:
    1,928
    Likes Received:
    807
    Joined:
    Jul 8, 2010
    Location:
    Buford, GA
    Rating
    100%
    Purchase & sale.

    Sent from my moto z4 using Tapatalk
     
    chucklenut likes this.
  9. mtnsmith

    mtnsmith The Hen that laid the Golden Legos

    Messages:
    6,665
    Likes Received:
    1,211
    Joined:
    Jun 12, 2010
    Location:
    Kennesaw,
    Rating
    100%

    Go to irs.gov and look up schedule D instructions and read it. Not difficult
     
    chucklenut likes this.
  10. chucklenut

    chucklenut The Hen that laid the Golden Legos

    Messages:
    44,972
    Likes Received:
    30,471
    Joined:
    May 10, 2011
    Location:
    atlanta
    Rating
    100%
    appreciate all the info guys; a good starting point

    lol im trying to decide if i should short a stock or two before i pick up work regularly. as it is now i am basically part time and id be surprised if i cleared 25K this year with labor wages